EA Expects Digital Sales To Pass Boxed Game Sales
Derek Walter for redOrbit.com – Your Universe Online
In another sign of the changing face of gaming, Electronic Arts (EA) expects digital downloads of its games to surpass traditional box sales within a few years. The company’s chief executive officer made this announcement as part of the recent quarterly earnings call.
“We have established an unmatched diversity in our business with multiple brands performing across several channels, business models and geographies,” said Chief Executive Officer John Riccitiello in a statement. “This allows us to drive profitable growth in a rapidly transforming marketplace for games.”
However, EA does not appear to be slowing down in the near term when it comes to traditional console or PC games. At the recent Gamescom 2012 conference in Germany the company showed off titles such as Crysis 3, FIFA 13, Medal of Honor Warfighter, Need for Speed Most Wanted, Star Wars: The Old Republic and Sim City 3.
In the past few years EA has also created mobile versions of many of its most popular franchises for iOS and Android. Madden, FIFA, Need for Speed, Medal of Honor, and The Sims all have titles that have done very well in the App Store and Google Play. Last year, for example, a mobile version of Madden launched on both major platforms simultaneously with its console product.
The gap is narrowing between revenue from packaged and digital products. EA anticipates that $2.6 billion of its products will be packaged and $1.7 billion in revenue will be from digital downloads in the fiscal year set to expire in March 2013, according to the company’s earnings report.
Also at its latest financial report, EA announced that it had revenue of $4.1 billion in fiscal 2012. The company’s stock has also increased 16 percent since it purchased back $500 million worth of stock last month.
However, this does not mean the end of packaged products is imminent. EA COO Peter Moore told Reuters, “We will never abandon physical media. As long as the consumer wants to buy something on a disc, we will be there to offer it.”